SSS Benefits You Might Be Missing

SSS Benefits You Might Be Missing

Social Security System or SSS is a unique identifier of every Filipino employee. It is a government body that offers social insurance programs for employees in the Philippines. Every Juan who’s part of the Philippine labor force is part of this program – for life.

But do you know the details surrounding this great program? In reality, what’s happening is that employees get deducted every month for the SSS contribution, but have zero idea of the why’s, what’s and how’s of SSS.

Is Becoming an SSS Member Worthy?

There is a lot of debate in terms of how worthy becoming an SSS member is for Juan Dela Cruz. Many raise doubts whether all the years of paying monthly contribution will be of use in the end.

SSS is mandated by law. It is a steady and dependable program for life. It is a type of social insurance you can rely on whether you die too soon or live too long. For employees who work 8 to 10 hours a day, 5 times a week, knowing that all the hard-earned money are kept safe and secure is important.

Today I’ll show you the three main reasons why you need SSS. I hope this post can help you decide to apply for one or continue paying for your monthly contributions.

SSS Is Member-Friendly

You need to be employed in an occupation that has SSS coverage so you could start to be covered by the SSS benefits. Don’t worry because becoming an SSS member is a requirement. The contributions you remit on a monthly basis are considered as part of your long term savings. You can’t withdraw your membership in SSS. Your contributions are not subject to a refund.

SSS is a member-friendly system. Employers are held liable once they fail to report an employee for his or her SSS coverage. If this happens, the employer must pay the benefits if the employee dies, becomes disabled, gets sick, or retires.

The employer must also shoulder all the unpaid contributions of the employee with a penalty of three percent per month. Non-compliants are held legally responsible in the Philippine law with a criminal case.

Employees, on the other hand, should make sure their contributions are remitted. I also advise you to register with My.SSS so you can access all your SSS information online. Make sure that your personal records are updated and corrected by submitting an E-4 or Member’s Data Amendment Form. If you want to really make use of your benefits, then always be informed on the changes and improvements in the SSS policies that are being made.

Enjoy Six Major Life Benefits

There are six (6) major types of benefits for SSS members. Each benefit has corresponding conditions for a member to qualify and a precise explanation and detail on the amount of benefit.

  • Sickness Benefit is a daily cash allowance paid for the number of days a member is unable to work due to valid sickness or injury. The member’s Sickness Benefit allowance is equivalent to 90% of his/her average daily credit and will only be granted up to a maximum of 120 days in one calendar year.
  • Maternity Benefit is a daily cash allowance given to a female member who is unable to work due to childbirth or miscarriage. To be eligible for this benefit the member must have paid at least three months of contributions within the 12-month period before the semester that birth or miscarriage occurred.
  • Disability Benefit is a cash benefit offered either as a monthly pension or a lump sum to any member who becomes partially, totally or permanently disabled. Qualified members are given a Disability Pension together with a P500.00 Supplemental Allowance.
  • Retirement Benefit is the most common reason why employees are encouraged to become an SSS member. It is a cash benefit granted either as a monthly pension or a lump sum to a member who reached the retirement age or can no longer work due to age. The retired member receives monthly Retirement Pension plus a 13th Month Pension every December.
  • Death Benefit is a cash benefit given as a monthly pension or a lump sum to the beneficiaries of a deceased member. Again, Death Pension is given with a 13th Month Pension every December.
  • Funeral Benefit is a funeral grant of P20,000.00 for the burial expenses of the deceased member.

Loan Programs from SSS

Additionally, what I like with SSS is that they continually advance their services for members. You don’t have to wait for your pension years to use your contributions. An SSS member can also apply for loans. If you have any personal financial need, you can easily apply for a salary loan. However, I discourage applying for a loan if your only intention is to experience how is it hold cash from a loan. I’m sure you’ve already heard this from someone, “If you won’t apply for a loan, someone will use your records and apply for a loan on your behalf.” Don’t be gullible. If you don’t have a business to fund or anything that really needs funding, don’t apply for a loan. Remember, a loan is a type of debt.

Salary Loan is granted to SSS members, whether they are employed, self-employed or voluntary members. You need to pass with the requirements set by the institution for you to qualify.

The process can also be longer than you expected it to be. It takes time for your HR Department to file the loan, approve the loan and grant the loan. The payment for the loan is then deducted on your salary.

A business and house loans were also introduced. However, be intelligent in applying for a loan for your finances may suffer in the end. Loans are meant for a greater purpose. You don’t apply for a loan because you want to treat your barkadas for a dinner on your birthday.

I think, SSS, as a social insurance program for Pinoys, is a must-have. If you need a primer pension or insurance, SSS is an option. But make sure that you also don’t forget to grow your cash flow with other forms of investments that can give you higher yield such as stocks, mutual funds and more.

Jaycee De Guzman


    • Hi Bong,

      Thank you for reading this article. I stumbled upon Atty. Persida Acosta’s article, which, I think, is related, if not totally relevant, to your question. This was the discussion between an inquirer and PAO’s office.

      Dear PAO,

      I am a surviving spouse of an SSS pensioner currently receiving his pension as a beneficiary. If I die, will our children (who are understandably beyond 21 years old and with no congenital defects) continue to receive the pension? I am also an SSS member and my beneficiary is my husband who is already deceased. What will happen to my pension when I die? Will my children receive my pension since my beneficiary is already dead? – Nellie

      Atty. Acosta’s office responded:
      Dear Nellie,
      One of the benefits which a member of the Social Security System (SSS) could enjoy is that provided under Section 13 of Republic Act (R.A.) No. 8282 of the SSS Law governing Death Benefits. Death Benefits of an SSS member shall be given to his/her primary beneficiaries and, in the absence thereof, to his/her secondary beneficiaries (Section 13, R.A. 8282). The primary beneficiaries under the SSS Law are the dependent spouse until he or she remarries and dependent legitimate, legitimated or legally adopted, and illegitimate children, while secondary beneficiaries include the dependant parents and in the absence of the foregoing, any other person designated by the member as his/her secondary beneficiary (Section 8 [k], R.A. 8282).

      R.A. 8282, the law which created the SSS, was enacted to promote social justice and provide meaningful protection to members and their beneficiaries against the hazards of disability, sickness, maternity, old age, death and other contingencies resulting in loss of income or financial burden (Section 2, R.A. 8282). By reason thereof, the beneficiaries of an SSS member are only those who are dependent upon him.

      Thus, the benefit which you are now receiving as a beneficiary of your deceased husband will not be transferred to your children or your beneficiaries even if they are dependent on you or otherwise qualified because the SSS law was created for the benefit of the beneficiaries of the SSS members and does not extend to the beneficiaries of the members’ beneficiaries.

      As to your membership in the SSS, your children who are admittedly of legal age with no congenital defect will not be entitled to the pension arising from death claim because only children who are dependent upon the SSS member shall receive death benefits. This means that the children should be unmarried, not gainfully employed and has not reached 21 years of age, or if 21 years of age, he is congenitally or while still a minor has been permanently incapacitated and incapable of self-support, physically or mentally (Section 8[e] [2], R.A. 8282).


  1. Jaycee, what about if the pensioner dies? The living spouse becomes the automatic pension benificiary? Or while still alive, the pensioner can elect who he/she wants to be the benificiary once he dies?

    • I presume you’re self-employed because if you’re employed by someone else’s company, I think you have no control over that.
      If you’re self-employed, you may pay the minimum and increase that gradually. However, I don’t recommend paying the minimum for 30 to 35 years and drastically pay the maximum 5 years before your retirement. SSS may raise an eyebrow for a sudden/suspicious shift from minimum to maximum contribution.

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